For the purposes of the principal Act (including this Act), unless the context otherwise requires,—

Section two of the principal Act is hereby amended by repealing the definition of the term “taxable income”, and substituting the following definition:

Where a taxpayer is a shareholder in and an employee of a private company and in his capacity of employee is not customarily paid salary or wages of a regular amount for regular pay periods of one month or less throughout a year, any salary, wages, or other income which he derives from the company for or on account of his service in the capacity of an employee of the company shall for the purposes of the principal Act (including this Act) be deemed to be income derived otherwise than from salary or wages. If any question is raised as to whether or not this subsection applies to any taxpayer or to any salary, wages, or other income, it shall be determined by the Commissioner, and his decision shall be final.

This Act shall apply with respect to the tax for the year of assessment commencing on the first day of April, nineteen hundred and fifty-eight, and for every subsequent year.

Section seventy-seven of the principal Act is hereby amended by repealing subsection two, and substituting the following subsection:

Section seventy-seven of the principal Act is hereby amended by adding to subsection one the words “which shall consist of two parts, namely, ordinary income tax and social security income tax”.

The First Schedule to the principal Act is hereby amended by repealing Part A, and substituting the Part A set out in the Second Schedule to this Act.

Subject to subsection five of this section, the enactments specified in the Third Schedule to this Act are hereby amended in the manner indicated in that Schedule.

Subject to subsection five of this section, all references in any enactment or document to social security contribution or to social security charge shall be deemed to be references to social security income tax, unless the context otherwise requires.

Nothing in this Act shall affect the application of any enactment to social security contribution or social security charge for any year before the year commencing on the first day of April, nineteen hundred and fifty-eight, or deductible on or before or after that date from any salary or wages or other income for any period before that date.

This Part of this Act shall apply notwithstanding anything to the contrary in the principal Act or in any other Part of this Act.

This Part of this Act shall apply to salary or wages for any period on or after the first day of April, nineteen hundred and fifty-eight, and to other source deduction payments which are paid or would normally be paid on or after that date, notwithstanding that any such other source deduction payment may as to the whole or any part thereof be for a period before that date.

If any question is raised as to whether or not a source deduction payment is as to the whole or any part thereof subject to this Part of this Act, it shall, subject to any regulations made for the purposes of this Part of this Act, be determined by the Commissioner.

It shall be a ground for objection under Part III of the principal Act to an assessment of the amount of any tax deduction that any determination of the Commissioner made for the purposes of this section is erroneous in fact.

For the purpose of enabling the collection of income tax from employees by instalments, where an employee receives a source deduction payment from an employer, the employer or other person by whom the payment is made shall, at the time of making the payment, make a tax deduction therefrom in accordance with this Part of this Act:

Provided that no tax deduction need be made from any source deduction payment made to any employee in respect of his employment as a private domestic worker:

Provided also that if a tax deduction is not made by the employer in any such case section twenty-one of this Act shall apply to the employee.

Where in the case of a regular full-time employment an employee receives salary or wages from any one employer for part only of the pay period, that salary or wages shall be deemed to be for the whole of the pay period.

For the purposes of this section, where an employee receives salary or wages in respect of work performed by the employee as a piece worker or out-worker and the employee is paid on a production basis, that salary or wages shall be deemed to be for the period from the commencement of the performance of the work until the completion of the work.

Where a source deduction payment for any pay period is paid in two or more separate sums, all sums so paid shall, for the purpose of calculating the amount of the tax deduction, be aggregated, and the employer may, at his option, make the tax deduction wholly from one sum or in part from each of any two or more sums:

Provided that where, by reason of the size or nature of the employer’s business or organisation, the dispersal of employees, or difficulty in assembling particulars, or for any other reason approved by the Commissioner, it is impracticable for an employer to pay overtime pay for a pay period at the same time as the other salary or wages for the pay period, the overtime pay of any employee for the pay period may, for the purpose of calculating the amount of the tax deduction, be aggregated with the employee’s salary or wages (other than overtime pay) for a subsequent pay period if, in respect of both pay periods,—

Where a source deduction payment, though not actually paid, is credited to or applied on account of any employee entitled thereto, the amount so credited or applied shall, for the purposes of this Part of this Act, be deemed to be paid when it is so credited or applied, and a tax deduction in respect thereof shall be made accordingly.

Where in respect of his employment an employee receives or enjoys a benefit referred to in section eighty-nine of the principal Act, or any other benefit in kind which is included in his salary or wages, or receives a payment by way of superannuation, pension, retiring allowance, or other allowance, or annuity which is included in salary or wages as defined in section two of this Act, the value of the benefit (whether in money or otherwise) or, as the case may be, the amount of the payment shall be deemed to accrue from day to day, and accordingly in each case the amount so accrued for any days in a pay period of the employee shall be deemed to be his salary or wages for the pay period, or, as the case may be, part of his salary or wages for the pay period.

Where a benefit to which subsection one of this section applies is received or enjoyed by an employee otherwise than in money, the value of the benefit for a pay period shall be deemed to be paid to the employee at the time when the residue of the salary or wages for the pay period is paid or deemed to be paid to him, and shall be aggregated with that residue for the purpose of calculating the amount of the tax deduction:

Provided that, where the value of the benefit constitutes the only salary or wages of the employee for the pay period, the value of the benefit shall be deemed to be paid to the employee on the last day of the pay period.

Subject to the provisions of this section, where an employee is a contributor to a superannuation fund, the amount of the salary or wages paid to the employee for a pay period shall, for the purpose of calculating the amount of the tax deduction, be deemed to be the residue of the payment of salary or wages after subtracting therefrom the amount of the regular current contributions made by the employee to the superannuation fund for that period.

Where any amount is subtracted under this section from any payment of salary or wages, the amount of the tax deduction to be made from that payment shall be increased by an additional deduction for social security income tax, of an amount calculated on the amount so subtracted at the rate at which social security income tax is for the time being payable.

Where, at the time when a source deduction payment is made or deemed to be made, the amount of the source deduction payment available in money is less than the amount of the tax deduction, or there is no amount available in money, the employee shall forthwith pay to the employer the amount of the deficiency in the tax deduction or, as the case may be, the amount of the tax deduction, and every amount so paid on any date shall be deemed to be a tax deduction made by the employer on that date from the source deduction payment made or deemed to be made to the employee.

If an employee makes default in paying to the employer any amount payable under this section, or any part of any such amount, the amount in respect of which default has been made shall be deemed for the purposes of section twenty-one of this Act to be a tax deduction that should have been made and was not made, and the provisions of that section shall apply accordingly.

Subject to the provisions of this Act, every tax deduction shall be of such amount as may be fixed by an annual taxing Act:

Provided that for any period for which the amount of a tax deduction is not fixed by an annual taxing Act, the tax deduction shall be of such amount as is fixed by the basic tax deductions specified in the First Schedule to this Act:

Provided also that where the amount of the tax deduction from a withholding payment is not fixed by an annual taxing Act or by the basic tax deductions, the tax deduction shall be of such amount as is fixed by regulations under the principal Act:

Provided further that where, by reason of the size of a source deduction payment, or (in the case of a reduced deduction) by reason of the number of the employee’s dependants, or for any other reason, the amount of a tax deduction is not fixed by an annual taxing Act or by the basic tax deductions or by regulations, the tax deduction shall be of such amount as is fixed by the Commissioner, taking into account the same factors as have been taken into account in fixing the amounts of other tax deductions of a like nature.

The annual taxing Act for any year may fix the amounts of tax deductions for periods throughout that year or during any part of that year or during any part of the next succeeding year, or indefinitely until the amounts are varied by a subsequent annual taxing Act.

Except as otherwise provided in this Act, the amount of every tax deduction shall be the maximum amount for the time being in force having regard to the nature and amount of the source deduction payment:

Provided that where a reduced deduction applies to the employee the tax deduction shall be of an amount equal to the amount of the reduced deduction.

For the purposes of this Part of this Act the tax code of any employee in relation to any source deduction payment shall be such one of the following codes as applies to the employee in respect of that source deduction payment in accordance with this section, namely:

Subject to the provisions of this Act, where any employee desires that a reduced deduction shall apply to him (whether or not the same or any other reduced deduction has previously applied to him), he may deliver to his employer a tax code declaration in a form authorised by the Commissioner, and containing such particulars as the Commissioner requires in relation to the employee’s dependants, and specifying the employee’s tax code as determined by those particulars, and thereupon that tax code shall apply to the employee in accordance with this section.

Where any employee considers that it is or will be undesirable or impracticable for him to deliver a tax code declaration to his employer, the employee may deliver the declaration to the Commissioner, and in any such case the Commissioner shall issue to the employee a tax code certificate addressed to the employer and specifying the employee’s tax code as determined by the particulars contained in the declaration or as determined by the Commissioner under subsection four of this section. The employee may deliver that certificate to his employer, and thereupon that tax code shall apply to the employee in accordance with this section.

Upon application by any employee who delivers a tax code declaration to the Commissioner under subsection three of this section, the Commissioner, in his discretion, may issue to the employee a tax code certificate addressed to the employer and specifying the employee’s tax code as determined on the basis that some or all of the dependants included in the tax code declaration are not dependants of the employee, and thereupon that tax code shall apply to the employee in accordance with this section. In every such case an adjustment may be made under subsection two of section twenty-six of this Act.

Except as otherwise provided in this Act, an employee who engages in more than one employment in any week ending with a Saturday shall not be entitled to have a reduced deduction applied to him in respect of more than one employment in that week, and shall not in that week deliver or maintain a tax code declaration or a tax code certificate in respect of more than one employment or otherwise obtain die benefit of a reduced deduction in respect of more than one employment:

Provided that, where in any such week the employee has left one regular full-time employment, the employee may in the same week, after leaving that employment, deliver a tax code declaration or a tax code certificate in respect of any other regular full-time employment.

Where an employee has delivered a tax code declaration or a tax code certificate to his employer, the tax code shall, subject to the provisions of this Act, apply to the employee in respect of all source deduction payments made by the employer to the employee after the delivery of the declaration or certificate and before the tax code ceases in accordance with subsection seven or subsection eight of this section to apply to the employee:

Provided that, except in the case of salary or wages for the first pay period of a new employment of the employee, the tax code shall not apply in respect of the salary or wages for any pay period commencing before the date of the delivery of the declaration or certificate to the employer.

Where a tax code applies to an employee on the last day of a year, the tax code shall not apply to the employee in respect of any source deduction payment made by the employer to the employee after that day, not being a payment of salary or wages for a pay period current on that day:

Provided that where there is no change in the dependants of the employee and the employee delivers a further tax code declaration or tax code certificate to the employer not later than three days after the first day of April in the next succeeding year, the tax code specified in that declaration or certificate shall be deemed to have commenced to apply to the employee immediately after the former tax code ceased to apply to him.

Where a tax code applies to an employee on the date on which a person named as a dependant of the employee in the tax code declaration on which the tax code is based ceases to be a dependant of the employee, the tax code shall not apply to the employee in respect of any source deduction payment made by the employer to the employee after that date, not being a payment of salary or wages for a pay period current on that date:

Provided that where the employee delivers a further tax code declaration or tax code certificate to the employer not later than three days after the date of his giving the notice required by subsection nine of this section, the tax code specified in that declaration or certificate shall be deemed to have commenced to apply to the employee immediately after the former tax code ceased to apply to him.

Where a tax code ceases under subsection eight of this section to apply to an employee by reason of any person ceasing to be a dependant of the employee, the employee shall, not later than four days after the date on which he became aware that that person had ceased to be a dependant, give notice in writing of that fact to the employer or (where the tax code declaration was delivered to the Commissioner) to the Commissioner, specifying the name of the dependant and the date on which he ceased to be a dependant. No employer or other person making a source deduction payment shall be liable for making a reduced deduction according to a tax code after it has ceased under subsection eight of this section to apply to the employee but before the employer has received notice (whether under this subsection or otherwise) that the dependant has ceased to be a dependant of the employee.

A reduced deduction applying to an employee in respect of his employment by any employer shall not apply to the employee in respect of his employment by any other employer, not being a successor of the first-mentioned employer in the same employment.

The Commissioner may vary any of the requirements of this section in relation to any employee or class of employees in such cases and to such extent as he thinks fit, and in every such case this section shall apply as so varied.

For the purposes of this Act a tax code declaration or tax code certificate which is delivered to an employer before the beginning of any year but is expressed to relate to that year shall be deemed to be delivered on the first day of April in that year.

Where any employee desires that a tax code shall apply to him in respect of his employment as a private domestic worker, he may deliver a tax code declaration to the Commissioner, and thereupon the provisions of this section shall, with the necessary modifications, apply in respect of that employment as if the Commissioner were the employer.

For the purpose of determining the tax code applicable to an employee the following provisions of this section shall apply.

The spouse of the employee shall be deemed to be a dependant of the employee for the purposes of the tax code based on a tax code declaration which includes the spouse as a dependant if—

A spouse who under subsection two of this section is a dependant of an employee for the purposes of any tax code shall cease to be such a dependant if and when, before the tax code ceases to apply to the employee, the employee knows or anticipates, or should have known or anticipated, that the income as aforesaid derived and to be derived by the spouse in the year aforesaid has exceeded or will exceed one hundred and twenty-five pounds.

A housekeeper as defined in section eighty-three of the principal Act shall be deemed to be a dependant of the employee for the purposes of the tax code based on a tax code declaration which includes the housekeeper as a dependant if, when the employee delivers the declaration to the employer or to the Commissioner,—

A housekeeper who under subsection four of this section is a dependant of an employee for the purposes of any tax code shall cease to be such a dependant if and when, before the tax code ceases to apply to the employee,—

A child as defined in section eighty-three A of the principal Act shall be deemed to be a dependant of the employee for the purposes of the tax code based on a tax code declaration which includes the child as a dependant if—

A child who under subsection six of this section is a dependant of an employee for the purposes of any tax code shall cease to be such a dependant if and when, before the tax code ceases to apply to the employee, any other person becomes entitled to a special exemption under section eighty-three A of the principal Act in respect of the child.

A relative as defined in section eighty-four of the principal Act shall be deemed to be a dependant of the employee for the purposes of the tax code based on a tax code declaration which includes the relative as a dependant if, when the employee delivers the declaration to the employer or to the Commissioner,—

A relative who under subsection eight of this section is a dependant of an employee for the purposes of any tax code shall cease to be such a dependant if and when, before the tax code ceases to apply to the employee,—

Except as provided in the foregoing provisions of this section, no person shall be deemed to be a dependant of an employee.

Except as otherwise provided in this Act, where during any week ending with a Saturday an employee has engaged in more than one employment (whether with the same employer or with two or more employers), the amount of the total tax deduction required to be made in respect of all payments of salary or wages made to the employee for that week or any part thereof shall be deemed to be the amount of the tax deduction that would have been required to be made if all those payments had been one payment made by one employer for that week, consisting of the total of the overtime pay (if any) comprised in those payments and the total of all salary or wages other than overtime pay comprised therein, and where that total tax deduction is not made in full section twenty-one of this Act shall apply accordingly:

Provided that, where the employee left one regular full-time employment before he engaged in another regular full-time employment, he shall not be deemed for the purposes of this section to have been engaged in both those employments in the one week:

Provided also that where the employee is employed as a shearer or a fruit, hops, or tobacco picker the salary or wages of the employee for that employment shall not be taken into account for the purposes of this section.

Where the amount of the tax deduction to be made from any salary or wages is increased, and before the date of the increase an employee has received from an employer a payment of salary or wages to the whole or a part of which the increase applies, and the proper tax deduction, taking the increase into account as far as it applies, has not been made in full at the time of the payment, the amount of the deficiency shall be added to the tax deduction required to be made from the next payment of salary or wages made to the employee in the same employment, and the amount of the tax deduction so required to be made shall be deemed to be increased accordingly.

Where any salary or wages become subject to tax deductions under this Part of this Act, and before the date of its becoming so subject an employee has received from an employer a payment of salary or wages of which the whole or a part is so subject, and the proper tax deduction has not been made in full at the time of the payment, the amount of the deficiency shall be added to the tax deduction required to be made from the next payment of salary or wages made to the employee in the same employment, and the amount of the tax deduction so required to be made shall be deemed to be increased accordingly:

Provided that the amount of the deficiency shall be deemed to be reduced by the amount (if any) deducted from the first-mentioned payment under the Social Security Act 1938 as social security charge on any salary or wages that is subject to tax deductions under this Part of this Act.

Notwithstanding anything to the contrary in the foregoing provisions of this Part of this Act, the Commissioner may, in such circumstances and to such extent as he thinks fit, reduce the amount of the tax deduction required to be made from any source deduction payment that has been or will be made to any employee or class of employees, or may make such adjustment as in his opinion is equitable, for the purpose in either case of meeting the special circumstances of any case or class of cases, upon or subject to such terms and conditions as he in his discretion requires.

In every such case the provisions of this Part of this Act shall apply as if they had been amended in accordance with the decisions or requirements of the Commissioner for the time being in force under this section.

Where the Commissioner in any case thinks fit (whether by reason of the employee being employed in two or more employments, or being entitled to have any loss carried forward under section one hundred and thirty-seven of the principal Act, or by reason of any reduction under section seventeen of this Act, or for any other reason), the Commissioner may issue to an employee a special tax code certificate under this section.

A special tax code certificate may, as the Commissioner in his discretion thinks fit, do all or any of the following things:

Where a special tax code certificate bearing the signature of the employee is produced to an employer at the time when he makes to the employee a payment to which the certificate relates, the provisions of the certificate in respect of that payment shall, subject to section twenty-one of this Act, apply notwithstanding anything to the contrary in this Act.

Where a special tax code certificate so produced to an employer provides for the making of a tax deduction from a specified proportionate part of any source deduction payment, the provisions of this Part of this Act as to tax deductions, other than this section and section twenty-one, shall, so far as they are applicable, apply in respect of the specified proportionate part as if that part constituted the whole of the source deduction payment.

The Commissioner may at any time cancel any special tax code certificate.

Not later than seven days after the Commissioner has given notice of the cancellation of a special tax code certificate to the employee named therein, the employee shall return the certificate to the Commissioner.

Every employer who makes a source deduction payment to any employee shall keep a proper record in respect of the employee, showing the amount of the source deduction payment before making any tax deduction, and the amount of the tax deduction (if any) made therefrom, and shall enter those amounts in the record at the time of making the source deduction payment.

Every employer shall take all reasonable precautions for the safe custody of all records that he is required to keep under this section and of all pay sheets and receipts for source deduction payments, and shall retain all such records, pay sheets, and receipts for not less than seven years after the making of the payments to which they relate:

Provided that this subsection shall not require the retention of any records, pay sheets, or receipts in respect of which the Commissioner has notified the employer that retention is not required.

Every employer who makes tax deductions from source deduction payments made to employees shall—

Paragraph (e) of subsection one of this section shall not apply to any employer in respect of any tax deduction made otherwise than in the course of a business carried on by him from a source deduction payment for which there is no pay period or from a withholding payment. In every such case the employer shall, not later than the twentieth day of the month next after the month in which the payment (if only one) or the final payment (in the case of two or more payments relating to the same services, contract, arrangement, dealing, or matter) was made, deliver to the Commissioner a signed copy of the tax deduction certificate delivered by him to the employee, and any tax code declaration or tax code certificate delivered to him by the employee, and shall also indicate on that copy of the tax deduction certificate that it is delivered under this subsection.

The Commissioner may vary any of the requirements of this section in relation to any employer or class of employers in such cases and to such extent as he thinks fit, and in every such case this section shall apply as so varied.

The executor or administrator of a deceased employer shall fulfil such of the obligations of the employer under this section as have not been fulfilled by the employer before his death.

Where for any reason a tax deduction is not made or is not made in full at the time of the making of any source deduction payment or payments, the employee shall—

For the purposes of the principal Act (including this Act), an employee shall, subject to subsection three of this section, be deemed to be a pay period taxpayer in respect of any year if in that year—

For the purposes of the principal Act (including this Act), an employee shall, subject to subsection three of this section, be deemed to be a partial pay period taxpayer in respect of any year if in that year—

Notwithstanding anything to the contrary in subsection one or subsection two of this section, any employee shall be deemed not to be a pay period taxpayer or, as the case may be, not to be a partial pay period taxpayer, in respect of any year, if the Commissioner so decides upon the grounds that subsection one or, as the case may be, subsection two would not have applied to the employee for that year had not the income of the employee from source deduction payments been diminished by reason of the occurrence in the year of the retirement of the employee from employment or of some other event, including the employee’s death, disability, or absence from New Zealand, causing the termination or suspension of his employment, and that—

Notwithstanding anything to the contrary in the principal Act, but subject to the provisions of this Part of this Act, the amount of income tax for which a pay period taxpayer is liable in respect of the income derived by the taxpayer in any year shall be determined exclusively and finally by the total amount of the tax deductions required under this Part of this Act to be made from that income.

A pay period taxpayer shall not furnish to the Commissioner a return of income for the year unless he is required by the Commissioner to do so.

Notwithstanding anything to the contrary in the principal Act, but subject to the provisions of this Part of this Act, the amount of income tax for which a partial pay period taxpayer is liable in respect of the income from employment derived by the taxpayer in any year shall be determined exclusively and finally by the total amount of the tax deductions required under this Part of this Act to be made from that income.

Subject to section fifty-five of this Act, the amount of income tax for which a partial pay period taxpayer is liable in respect of the income derived by the taxpayer in any year otherwise than from income from employment shall be an amount equal to the difference between the income tax assessable on the taxpayer’s taxable income under an assessment made under Part VI of the principal Act and the income tax that would have been assessable under a similar assessment—

Provided that the amount of income tax for which a taxpayer is liable under this subsection shall not be less than the amount of social security income tax assessable on the income other than income from employment.

Where a tax deduction has been made from a payment of income from employment made to a pay period taxpayer to whom subsection one of section twenty-three of this Act applies or to a partial pay period taxpayer to whom subsection one of section twenty-four of this Act applies, and the amount paid to the Commissioner after being so deducted is in excess of the amount of the tax deduction that should have been made in accordance with this Part of this Act, the Commissioner, upon application in that behalf made in writing not later than the end of the sixth year after the year in which the tax deduction was made, shall pay to the taxpayer the amount of the excess or, at the option of the Commissioner, credit that amount in payment of any tax due and payable by the taxpayer.

Where in any year a reduced deduction has been made from a payment of income from employment made to a pay period taxpayer or to a partial pay period taxpayer, and the amount of the reduced deduction was determined on the basis that some person was a dependant of the taxpayer, and it transpires that in that year the taxpayer, on an assessment of ordinary income tax under Part VI of the principal Act, would not have been entitled to a special exemption in respect of that person, or would have been entitled only to a portion of a special exemption, the taxpayer shall be liable to pay to the Commissioner the difference between the amount of the reduced deduction so made and the amount of the tax deduction that should have been made on the basis of the true facts. Any sum payable to the Commissioner under this subsection shall—

Where in any year a tax deduction has been made from a payment of income from employment made to a pay period taxpayer or to a partial pay period taxpayer, and the amount of the deduction was determined on the basis that some person was not a dependant of the taxpayer, and it transpires that in that year the taxpayer, on an assessment of ordinary income tax under Part VI of the principal Act, would have been entitled to a special exemption in respect of that person, the Commissioner, upon application in that behalf made in writing not later than the end of the next succeeding year or within such further period as the Commissioner in his discretion may allow in any case or class of cases, may make an adjustment in favour of the taxpayer of the difference between the amount of the tax deduction so made and the amount of the reduced deduction that should have been made on the basis of the true facts. To give effect to any such adjustment the Commissioner may, at his discretion, pay to the taxpayer such amount as, in the opinion of the Commissioner, the taxpayer is entitled to, or issue to the taxpayer a special tax code certificate, or credit the amount of the adjustment in payment of any tax due and payable by the taxpayer.

For the purposes of subsection one or subsection two of this section, where the amount of a tax deduction that should have been made should be calculated on the basis that the taxpayer would have been entitled only to a portion of a special exemption, and the amount is not provided for in any table of tax deductions applicable to the taxpayer, the Commissioner shall calculate the amount of the tax deduction taking into account the amount to which the taxpayer would have been entitled by way of special exemption on an assessment of ordinary income tax under Part VI of the principal Act and otherwise taking into account the same factors as have been taken into account in calculating the tax deductions in the table.

Where in any year a pay period taxpayer or a partial pay period taxpayer, on an assessment of ordinary income tax under Part VI of the principal Act, would have been entitled to deductions by way of special exemption under section eighty-five of the principal Act in excess of the total of twenty-five pounds and of the amounts of the regular current contributions to a superannuation fund subtracted in the year from the taxpayer’s salary or wages under section ten of this Act, the Commissioner, upon application in that behalf made in writing not later than the end of the next succeeding year or within such futher period as the Commissioner in his discretion may allow in any case or class of cases, shall make an allowance in favour of the taxpayer—

To give effect to the allowance under this section, the Commissioner shall calculate the amount of ordinary income tax represented by the allowance, being die amount by which—

exceeds—

The amount of ordinary income tax represented by the allowance, as calculated under subsection two of this section, shall for the purposes of section two hundred and twenty-three of the principal Act be deemed to be income tax paid by the taxpayer in excess of the amount properly payable.

Every employee who is required to furnish to the Commissioner a return of any assessable income derived by him in any income year shall, except where the Commissioner otherwise directs, forward to the Commissioner with the return all tax deduction certificates delivered to the employee in respect of tax deductions made in the income year from source deduction payments made to the employee.

Where the Commissioner receives from an employee any tax deduction certificates in respect of tax deductions made in the income year from source deduction payments made to the employee, or receives the amount of any tax deduction so made and not included in any tax deduction certificate, and the Commissioner has made an assessment of income tax in respect of the income derived by the employee in the income year or is satisfied that no income tax is payable in respect of that income, the Commissioner shall credit the total of the amounts of the tax deductions (but not including any additional tax or penal tax) shown in the certificates, or received as aforesaid, in payment successively of—

and shall refund to the employee an amount equal to the amount of the tax deductions not so credited.

If the amount credited by the Commissioner under paragraph (b) of subsection two of this section is less than the total of the income tax and social security charge referred to in that paragraph, the Commissioner shall apply the amount so credited in payment, so far as the amount extends, of such income tax or social security charge as the Commissioner determines.

If the Commissioner has reason to believe that any tax deduction certificate received by him for the purposes of this section is incorrect in any particular, he may retain the certificate for such period as he thinks fit, and shall not deal with the certificate as required by the foregoing provisions of this section until he is satisfied that the certificate is correct.

Where the Commissioner has credited in payment of income tax, or made a refund in respect of, an amount shown in a tax deduction certificate which is in excess of the amount that the employer has deducted from a source deduction payment to which the certificate relates, the employer and the employee shall be jointly and severally liable to pay to the Commissioner the amount of the excess, and that amount shall be deemed to have become due and payable on the fifteenth day of May in the year after the year to the whole or part of which the tax deduction certificate relates.

Subsections two, three, and four of this section shall not apply to a married woman whose husband is assessable and liable for income tax on her income under an aggregate assessment made under section one hundred and four of the principal Act.

Where the Commissioner is satisfied that a tax deduction certificate has been lost or destroyed, and is satisfied as to the amount of the deductions shown in that certificate, the Commissioner shall apply the provisions of section twenty-eight of this Act in the same manner as if the certificate had been received by the Commissioner.

Where the Commissioner is satisfied that any employer has made any tax deduction from a source deduction payment made to an employee, and has failed to deliver to the employee within the prescribed time a tax deduction certificate in respect of the deduction, the Commissioner may apply the provisions of section twenty-eight of this Act in the same manner as if a tax deduction certificate showing the tax deduction had been delivered to the employee and received by the Commissioner.

The amount of every tax deduction made under this Part of this Act shall be held in trust for the Crown; and any amount so held in trust shall not be property of the employer liable to execution, and, in the event of the bankruptcy or liquidation of the employer or of an assignment for the benefit of the employer’s creditors, shall remain apart, and form no part of the estate in bankruptcy, liquidation, or assignment.

Where a tax deduction has been made under this Part of this Act and the employer has failed to deal with the amount of the tax deduction or any part thereof in the manner required by subsection one of this section or the other provisions of this Part of this Act, the amount of the tax deduction for the time being unpaid to the Commissioner shall, in the application of the assets of the employer upon the bankruptcy or liquidation of the employer or upon an assignment for the benefit of the employer’s creditors, rank, without limitation in amount and notwithstanding anything in any other Act, in order of priority immediately after preferential claims for wages or other sums payable to or on account of any servant or worker or apprentice or articled clerk, and in priority to all other claims.

Where an employer fails wholly or in part to make any tax deduction in accordance with his obligations under this Part of this Act, or is liable to pay any sum to the Commissioner under this Part of this Act, an amount equal to the total for the time being unpaid to the Commissioner in respect of that tax deduction or sum (including any additional tax or penal tax), and in respect of any judgment obtained therefor (including any costs, fees, or expenses included in the judgment or otherwise payable by the employer to the Commissioner in respect thereof) shall be a charge on all the real and personal property of the employer.

Every charge created by this section shall be subject to all mortgages, charges, or encumbrances existing at the time of the creation of the charge, but, subject to the provisions of this section, shall have priority over all other mortgages, charges, or encumbrances. Notwithstanding anything to the contrary in any other Act, if any property subject to the charge created by this section is also subject to a charge created by that other Act, the charges shall rank equally with each other unless by virtue of that Act the charge created thereby would be deferred to the charge created by this section.

For the purposes of this section the expression “registration Act to which the property is subject”, in relation to any property, means—

The Commissioner may register any charge on any property created by this section under any registration Act to which the property is subject by depositing with the appropriate Registrar a certificate under the hand of the Commissioner setting forth the description of the property charged and the amount payable; and in every such case the Registrar shall, without payment of any fee, register the certificate as if it were an instrument registrable under the registration Act.

Upon the registration of any such certificate under any registration Act it shall be deemed to be actual notice to all persons of the existence and amount of the charge, and the charge shall have operation and priority accordingly in relation to the property that is subject to the charge and to the registration Act:

Provided that in so far as any mortgage that is registered in respect of that property before the registration of the charge secures any money that is advanced after written notice of the charge or of the registration of the charge has been given to the mortgagee, or to any solicitor for the time being acting for the mortgagee in respect of the mortgage, the charge shall have priority over the mortgage.

When any registered charge has been satisfied, the Commissioner shall deposit with the appropriate Registrar a release of the charge, and the Registrar shall, without payment of any fee, register the release as if it were an instrument registrable under the registration Act.

Any charge created by this section which is registered against any property shall operate to secure any amount secured by any prior unregistered charge and unpaid at the time of the registration of the charge, and also to secure any amount secured by any charge coming into existence after the registration of the charge, to the intent that the registered charge shall operate to secure the total of all amounts for the time being owing by the employer under all charges created by this section.

If any amount constitutes by virtue of this section a charge on any property the Supreme Court may make such order as it thinks fit, either for the sale of that property or any part thereof, or for the appointment of a receiver of the rents, profits, or income thereof, and for the payment of the amount of the charge and the costs of the Commissioner out of the proceeds of the sale or out of the rents, profits, or income.

Where any property has been sold under any such order, the Supreme Court may, on the application of the purchaser or the Commissioner, make an order vesting the property in the purchaser.

Every such vesting order shall have the same effect as if all persons entitled to the property had been free from all disability and had duly executed all proper conveyances, transfers, and assignments of the property for such estate or interest as is specified in the order, and the order shall be subject to stamp duty accordingly; and in the case of land which is subject to the Land Transfer Act 1952, the purchaser’s title thereto shall be registered accordingly.

Without limiting the application of section two hundred and twenty-eight of the principal Act, it is hereby declared that every person commits an offence against the principal Act who—

Every person who commits an offence against paragraph (b) of subsection one of this section shall be liable to imprisonment for a term not exceeding twelve months or to a fine not exceeding one hundred pounds or to both.

For the purposes of paragraph (b) of subsection one of this section a tax deduction shall be deemed to have been made if and when payment is made of the net amount of any source deduction payment, and the amount of the tax deduction shall be deemed to have been applied for a purpose other than the payment thereof if the amount of the tax deduction is not duly paid to the Commissioner:

Provided that no person shall be convicted of an offence under paragraph (b) of subsection one of this section if he satisfies the Court that the amount of the tax deduction has been accounted for, and that his failure to account for it within the prescribed time was due to illness, accident, or other cause beyond his control.

Where—

that employer or other person shall be chargeable by way of penalty, in addition to any other penalty to which he may be liable, with an additional amount (hereinafter referred to as penal tax) not exceeding an amount equal to treble the amount in respect of which default has been made (hereinafter referred to as the deficient deduction).

For the purposes of paragraph (b) of subsection one of this section a tax deduction shall be deemed to have been made if and when payment is made of the net amount of any source deduction payment, and the amount of the tax deduction shall be deemed to have been applied for a purpose other than the payment thereof if the amount of the tax deduction is not duly paid to the Commissioner:

Provided that no person shall be chargeable with penal tax under paragraph (b) of subsection one of this section if he satisfies the Commissioner that the amount of the tax deduction has been accounted for, and that his failure to account for it within the prescribed time was due to illness, accident, or other cause beyond his control.

Penal tax imposed by this section shall for all purposes be deemed to be of the same nature as the deficient deduction, and shall be recoverable accordingly.

Subject to the provisions of this Act, the principal Act shall apply with respect to all penal tax imposed under this section as if it were penal tax under section two hundred and thirty-one of the principal Act and as if the person chargeable with the penal tax were the taxpayer.

Where—

that employer or other person shall, unless the Commissioner is satisfied that he has not been guilty of wilful neglect or default, be liable, without conviction, in addition to any other penalty to which he may be liable, to a penalty equal to ten per cent of the amount in respect of which default has been made.

For the purposes of paragraph (b) of subsection one of this section a tax deduction shall be deemed to have been made if and when payment is made of the net amount of any source deduction payment.

A penalty imposed under this section shall for all purposes be deemed to be of the same nature as the amount or part thereof in respect of which it is imposed, and shall be recoverable accordingly.

Subject to the provisions of this Act, the principal Act shall apply with respect to the amount of every penalty imposed under this section as if it were additional tax under section two hundred and eight of that Act and as if the person liable to the penalty were the taxpayer.

Where a tax deduction is required to be made under the provisions of this Part of this Act, any agreement not to make the tax deduction in accordance with those provisions shall be void.

Where any amount has been deducted from a source deduction payment by way of tax deduction under this Part of this Act, the amount so deducted—

Subject to the provisions of this Act, the provisions of the principal Act shall apply with respect to every amount that any employer, employee, or other person is liable to account for or pay to the Commissioner under this Part of this Act as if the amount were income tax.

Without limiting the general power to make regulations conferred by section two hundred and forty-three of the principal Act, it is hereby declared that regulations may be made under that section for all or any of the following purposes:

Notwithstanding anything to the contrary in the principal Act, provisional tax shall be payable by all provisional taxpayers in accordance with this Part of this Act.

This Part of this Act shall apply to the income of provisional taxpayers for the income year commencing on the first day of April, nineteen hundred and fifty-eight, and for every subsequent income year.

For the purposes of the principal Act (including this Act), the following persons shall be deemed to be provisional taxpayers in respect of any income year:

Any subsisting company may, by notice in writing delivered to the Commissioner not later than the seventh day of June in any year, elect to become a provisional taxpayer in respect of the income year commencing on the first day of April in that year and in respect of every subsequent income year.

Every election under this section shall be irrevocable.

In respect of the first income year to which an election under this section relates, and in respect of every subsequent income year, the company shall be deemed to be a provisional taxpayer and not to be a subsisting company.

Where a subsisting company makes an election under this section, the Commissioner may make such arrangements with the company as he in his discretion thinks fit, for extending the time for the payment of any instalment of provisional tax payable by the company in the first year in which the company is liable to pay provisional tax, or of any income tax payable by the company in respect of its income for the income year preceding the first year in which the company is liable to pay provisional tax.

For the purposes of the principal Act (including this Act), the term “provisional income”, in relation to an income year, and in relation to ordinary income tax and social security income tax respectively, means an amount equal to the taxable income of the taxpayer for the preceding year:

Provided that, in the case of a taxpayer who commenced during the preceding year to derive income from any source, the term “provisional income”—

Subject to this Part of this Act, the amount of provisional tax payable in respect of the income of an income year—

Where the assessable income of the taxpayer for the year preceding the income year included any source deduction payment, the provisional tax payable in respect of the income of the income year shall be the provisional tax otherwise payable in accordance with subsection one of this section, reduced by an amount equal to the provisional tax that would have been payable in respect of the income of the income year if the assessable income for the preceding year had consisted exclusively of the total of the source deduction payments included therein.

Where an agent is liable to pay any amount of provisional tax in respect of the income of his principal, the provisional tax payable by the principal shall be reduced by that amount.

Where the rates of income tax or of ordinary income tax or of social security income tax for the income year (hereinafter referred to as the altered rates) are higher or lower than the rates for the preceding year (hereinafter referred to as the former rates), the provisional tax otherwise payable or required to be calculated in respect of the income to which the altered rates are applicable shall be increased or reduced by the amount by which the tax imposed at the altered rates on a taxable income equal to the income concerned is greater or less than the tax imposed at the former rates on the same amount of taxable income.

The amount of provisional tax payable in respect of the income of the income year commencing on the first day of April, nineteen hundred and fifty-eight, shall be calculated as if this Act had come into force on the first day of April, nineteen hundred and fifty-seven, and had applied to the income of provisional taxpayers for the income year that commenced on the first day of April, nineteen hundred and fifty-seven, and as if the years referred to in sections sixty to sixty-five of this Act had been in every case one year earlier than the years specified therein.

The amount of provisional tax payable by a taxpayer in respect of the income of an income year shall, subject to adjustment by the Commissioner, be estimated in the first place by the taxpayer to such extent and in such manner as may be prescribed in the annual return that he is required to furnish in that year of the income of the preceding year.

After the Commissioner has ascertained the amount of the provisional tax he may, where he considers it necessary or advisable to do so, give notice to the taxpayer of the amount of the provisional tax and of the amount of any instalment thereafter to be paid, but the omission to give any such notice shall not relieve the taxpayer from liability to pay on the due date thereof any instalment of the provisional tax as estimated by the taxpayer.

The ascertainment of the amount of any provisional tax by the Commissioner shall not be open to objection by the taxpayer under Part III of the principal Act.

In the case of a taxpayer whose income derived in the preceding year otherwise than from source deduction payments consisted exclusively of interest and investment society dividends and did not exceed fifty pounds, the amount of the provisional tax as estimated by the taxpayer shall be due and payable on the seventh day of June in the income year.

If the amount of the provisional tax as ascertained by the Commissioner is greater than the amount so estimated by the taxpayer, and the Commissioner gives notice thereof to the taxpayer under subsection two of section forty-five of this Act, the balance of the provisional tax shall be due and payable on a date specified in that behalf in the notice, not being less than thirty days after the date of the notice.

In the case of every taxpayer to whom section forty-six of this Act does not apply, the provisional tax shall be payable in three instalments, which shall be due and payable respectively on the seventh day of June, the seventh day of November, and the seventh day of February in the income year:

Provided that, where the taxpayer furnishes an annual return of income under section eight of the principal Act for an accounting year ending with an annual balance date other than the thirty-first day of March, and the first such accounting year ends after the thirtieth day of September, nineteen hundred and fifty-eight, the three instalments for the income year corresponding with the second and every subsequent such accounting year shall be due and payable respectively on the seventh day of February, the seventh day of June, and the seventh day of November in the accounting year:

Provided also that where the due date fixed by the first proviso to this subsection for the first instalment becoming due within an accounting year is less than two months after the end of the preceding accounting year, the time for the payment of the first instalment shall be deemed to be extended to the date two months after the end of the preceding accounting year, and the time for the payment of the second and third instalments shall in each case be deemed to be extended for the same number of days as the time for the payment of the first instalment is extended.

The amount of any instalment that is payable before the Commissioner gives a notice to the taxpayer under subsection two of section forty-five of this Act shall be one-third of the amount of the provisional tax as estimated by the taxpayer.

The amount of each instalment that is payable after the Commissioner has given a notice to the taxpayer under subsection two of section forty-five of this Act shall be the amount specified in that behalf in the notice. The amount to be so specified—

This section shall be subject to section forty-eight of this Act.

Where, in the case of a provisional taxpayer whose income for the preceding year consisted exclusively or principally of income derived otherwise than from source deduction payments and who is liable in the income year to furnish an annual return of that income (in this section referred to as the required return), it has not been practicable to prepare, by the due date for payment of the first instalment of the provisional tax, such accounts as may be necessary to show that income, the taxpayer—

In any such case the amount of the provisional tax shall, subject to adjustment as provided in this section, be calculated in the first place on the amount of the income disclosed in the interim return at the rates of income tax last fixed by an annual taxing Act.

If an interim return is made by a provisional taxpayer not later than the seventh day of June in the income year, and each instalment of the provisional tax payable in accordance with subsection one of this section is paid not later than one month after the due date for payment thereof, the time for furnishing the required return shall be deemed to be extended to the first day of September in the income year:

Provided that, in any case where the interim return has been made by a taxpayer who is authorised to furnish the required return for an accounting year ending with an annual balance date between the first day of July and the first day of October, the time for furnishing the required return shall be deemed to be extended to the date two months after the end of the accounting year.

If any taxpayer who has furnished an interim return in accordance with this section is unable to furnish the required return within the extended time fixed under subsection three of this section, the Commissioner, upon application in that behalf made in writing within that extended time, may further extend the time for furnishing the required return to such date as the Commissioner in his discretion thinks proper in the circumstances. Every such application shall state fully the reasons for making the application.

Where the amount of the income disclosed in the required return exceeds the amount on which the provisional tax was theretofore calculated, the additional amount payable in respect of any instalment of the provisional tax which became payable before the furnishing of the required return shall be paid by the taxpayer forthwith on furnishing the required return in accordance with this section.

Subject to the foregoing provisions of this section, all instalments of the provisional tax in respect of the income shown in the required return shall be ascertained and payable in accordance with the provisions of sections forty-five to forty-seven of this Act.

Where any taxpayer believes that the income derived by him (otherwise than from source deduction payments) in the income year will be less than the income so derived by him in the preceding year, the taxpayer may, within the time within which he is required to furnish a return of his income for that preceding year, furnish to the Commissioner a statement showing in relation to ordinary income tax and social security income tax respectively—

Where a taxpayer duly furnishes to the Commissioner a statement under subsection one of this section, the amount of provisional tax payable by the taxpayer in respect of the income of the income year shall, subject to subsection three of this section, be an amount equal to the amount by which the income tax assessable on an assessment of income tax made on the taxpayer under Part VI of the principal Act on an amount of income equal to the estimated taxable income exceeds the income tax that would have been assessable under a similar assessment if the assessable income had consisted exclusively of the source deduction payments.

Where the Commissioner has reason to believe that the taxable income or the non-assessable income that will be or has been derived by the taxpayer in the income year is greater than the estimated taxable income or, as the case may be, the non-assessable income estimated by the taxpayer, the Commissioner (whose decision shall be final and conclusive)—

and the amount so calculated shall be the amount of provisional tax payable by the taxpayer in respect of the income of the income year.

The respective amounts estimated by the Commissioner under subsection three of this section shall not be greater than the amounts, in relation to ordinary income tax and social security income tax respectively, of the taxable income, source deduction payments, income other than source deduction payments, and non-assessable income of the taxpayer for the year preceding the income year.

Where, in respect of the income of any income year, any taxpayer has furnished a statement under subsection one of section forty-nine of this Act and the Commissioner has not made an estimate under subsection three of that section, the taxpayer shall, subject to subsection three of this section, be liable to pay to the Commissioner, by way of additional tax, an amount calculated in accordance with subsection two of this section, if the amount of provisional tax calculated under subsection two of section forty-nine of this Act is less than eighty per cent of the smaller of the following amounts, namely:

The amount of additional tax payable under this section shall be an amount equal to ten per cent of the amount by which eighty per cent of the smaller of the amounts specified in paragraphs (a) and (b) of subsection one of this section exceeds the amount of provisional tax calculated under subsection two of section forty-nine of this Act.

Where the Commissioner is satisfied that the taxpayer has become liable to pay additional tax under this section by reason of his taxable income for any income year being affected by circumstances of which he was not aware when he furnished to the Commissioner a statement under subsection one of section forty-nine of this Act, the Commissioner may in his discretion remit the additional tax or any part thereof.

Additional tax payable under this section shall for all purposes be deemed to be of the same nature as the income tax that is assessed to the taxpayer in respect of the taxable income of the income year, and shall be recoverable accordingly.

Subject to the provisions of this Act, the principal Act shall apply with respect to all additional tax payable under this section as if it were additional tax under section two hundred and eight of that Act.

Where, by reason of the provisions of section one hundred and seventy of the principal Act or by reason of the provisions of any Order in Council under section one hundred and seventy-one or section one hundred and seventy-two of the principal Act, the amount of income tax payable by a taxpayer in respect of the income of an income year is likely to be less than the amount of provisional tax that, but for this section, would be payable in respect of that income, the Commissioner may reduce the provisional tax by such amount as he thinks reasonable in the circumstances.

Where an alteration of the amount of provisional tax payable by any taxpayer is, in the opinion of the Commissioner, necessary, whether by reason of the amendment of any assessment of income tax or by the operation of subsection three of section forty-nine of this Act or otherwise, the Commissioner may make the necessary alteration and shall give to the taxpayer notice in writing of the altered amount.

If the amount of the provisional tax is increased, the additional amount payable in respect of any instalment of the provisional tax that became payable before the date of the notice shall become due and payable on a date to be specified in the notice, not being less than thirty days after the date of the notice.

If the amount of the provisional tax is reduced, the Commissioner shall credit the amount overpaid in respect of any instalment of the provisional tax in payment successively of—

and shall refund to the taxpayer an amount equal to the amount of the overpayment not so credited.

If the amount credited by the Commissioner under paragraph (b) of subsection three of this section is less than the total of the income tax and social security charge referred to in that paragraph, the Commissioner shall apply the amount so credited in payment, so far as the amount extends, of such income tax or social security charge as the Commissioner determines.

Any taxpayer may at his option, at such time or times as he thinks fit, make voluntary payments to the Commissioner of such amounts as he thinks fit by way of additional provisional tax, being either—

The penal provisions of this Act shall not apply to any additional provisional tax paid under this section.

The amount of income tax payable in respect of income of an income year by a taxpayer who is liable to pay provisional tax in respect of the income shall, to such extent and in such manner as may be prescribed and subject to adjustment by the Commissioner, be estimated in the first place by the taxpayer in the annual return of that income which he is required to furnish in the next year.

If the amount of income tax as so estimated is greater than the total of the amounts of the instalments of provisional tax paid by him in respect of the income and of any tax deductions made from source deduction payments included in the income, the excess of the income tax as so estimated (hereinafter referred to as the estimated final tax) shall be due and payable by the taxpayer to the Commissioner on the last day on which the taxpayer is required to furnish the return under section fourteen of the principal Act or, as the case may be, to furnish the required return under section forty-eight of this Act.

Where, in respect of an income year and the preceding year, the income derived by any provisional taxpayer otherwise than from source deduction payments in each of those years consisted exclusively of interest and investment society dividends and exceeded twelve pounds but did not exceed fifty pounds, the Commissioner, at his discretion and in such circumstances as he thinks fit, may determine that the amount of income tax for which the taxpayer is liable in respect of the income so derived in the income year shall be determined exclusively and finally by the amount of the provisional tax in respect of that income, notwithstanding that the amount of that income may be greater or less, or the rates of income tax may be higher or lower, in the income year than in the preceding year.

Any taxpayer who considers that he is adversely affected by a determination of the Commissioner under subsection one of this section, and who has paid the provisional tax in respect of the income of the income year for which the determination was made, may apply in writing to the Commissioner not later than the end of the year after the income year, or within such further period as the Commissioner in his discretion may allow in any case or class of cases, for an assessment of income tax in respect of that income in accordance with subsection two of section twenty-four of this Act, and in any such case the income tax so assessed shall, subject to subsection three of this section, be the income tax payable by the taxpayer in respect of that income.

Where, in respect of the income of an income year after the first income year to which this Part of this Act applies, the income tax as so assessed is less than the provisional tax paid by the taxpayer in respect of that income, the Commissioner, at his discretion, may increase the amount of the income tax as so assessed by an amount ascertained by the Commissioner as the amount of the total reduction of the taxpayer’s income tax in all or any of the four income years preceding the income year, being income years to which this Part of this Act applies.

For the purposes of subsection three of this section, the amount to be ascertained by the Commissioner as the total reduction of the taxpayer’s income tax in all or any of the four income years preceding the income year, being income years to which this Part of this Act applies, shall be the amount by which, as the result of a determination made by the Commissioner under subsection one of this section for any of those years, the total income tax paid by the taxpayer in respect of the income (other than income from source deduction payments) of the years for which such a determination was made is less than the total income tax assessable in respect of that income in those years in accordance with subsection two of section twenty-four of this Act:

Provided that the amount so ascertained in respect of an assessment of income tax in respect of the income of any income year shall not include any amount which has been applied under subsection three of this section to increase the income tax assessed in respect of the income of any earlier income year.

Notice of a determination made by the Commissioner under subsection one of this section may be given by a general direction in any prescribed form of return of income, or in such other manner as the Commissioner thinks fit.

In the case of every provisional taxpayer to whom section fifty-five of this Act does not apply and who is not a partial pay period taxpayer, the amount of income tax for which the taxpayer is liable in respect of the income derived by him in any income year shall be assessed under Part VI of the principal Act.

All income tax payable under any such assessment shall be due and payable on a date specified in that behalf in the notice of the assessment given to the taxpayer, not being less than thirty days after the date of the notice.

Where any provisional taxpayer to whom section fifty-five of this Act does not apply has paid provisional tax in respect of any income year, and the Commissioner has made an assessment of income tax in respect of the income derived by the taxpayer in the income year or is satisfied that no income tax is payable in respect of that income, the Commissioner shall credit the amount of the provisional tax paid by the taxpayer (including any amount paid as estimated final tax, but not including any additional tax or penal tax) in payment successively of—

and shall refund to the taxpayer an amount equal to the amount of the provisional tax and estimated final tax not so credited.

If the amount credited by the Commissioner under paragraph (b) of subsection one of this section is less than the total of the income tax and social security charge referred to in that paragraph, the Commissioner shall apply the amount so credited in payment, so far as the amount extends, of such income tax or social security charge as the Commissioner determines.

Where a married man is assessable and liable for income tax on the income of his wife under an aggregate assessment made under section one hundred and four of the principal Act, and the income of the wife included any source deduction payments, the tax deductions made from those source deduction payments, and any amount received by the Commissioner in respect of any such tax deduction, shall be deemed to be provisional tax paid by the husband, and shall be applied and dealt with under this section accordingly.

Subject to the provisions of this Act, the provisions of the principal Act shall apply with respect to every amount that any person is liable to pay to the Commissioner under this Part of this Act, whether as provisional tax or estimated final tax or otherwise, as if the amount were income tax.

In this Part of this Act, unless the context otherwise requires,—

For the purposes of the principal Act (including this Act), every person (other than a company or a public authority or a Maori authority) who derives assessable income in the transitional income year shall be deemed to be a transitional taxpayer.

In addition to any income tax levied under section seventy-seven of the principal Act for the transitional year of assessment, income tax at the rates fixed for that year shall, subject to this Part of this Act, be assessed and levied in and for that year on all income derived during the transitional income year—

An assessment made for the purposes of this Part of this Act shall be separate and distinct from any assessment of income tax levied under section seventy-seven of the principal Act.

Subject to this Part of this Act, the provisions of the principal Act shall apply with respect to any income tax levied under this section as if that tax were income tax levied in the transitional year of assessment under section seventy-seven of the principal Act.

For the purpose of assessing social security income tax under section sixty-one of this Act in respect of any transitional taxpayer, there shall be excluded from the income derived in the transitional income year any such income from which social security charge under the Social Security Act 1938 is deductible under that Act or any other enactment.

In the assessment of every transitional taxpayer for social security income tax under section sixty-one of this Act there shall be allowed from the tax assessed a rebate of a sum equal to the tax so assessed or the sum of seven pounds ten shillings, whichever is the smaller.

Where any transitional taxpayer who is assessed for social security income tax under section sixty-one of this Act—

payment of that social security income tax shall not be required to be made before the tax becomes due and payable in accordance with the following provisions of this section.

Subject to the remission of the tax wholly or in part under section two hundred and twenty-six of the principal Act on the ground of hardship, all such tax assessed to any taxpayer shall be due and payable on a date specified in that behalf in a notice given by the Commissioner—

Where a transitional taxpayer is entitled to a remission of ordinary income tax under this Part of this Act the Commissioner need not cause notice of the assessment of the tax to be given to the taxpayer.

Except as otherwise expressly provided, the transitional income year shall for all the purposes of the principal Act (including this Act) be deemed to be a normal income year.

Subject to this Part of this Act, every transitional taxpayer shall be entitled to a remission of the ordinary income tax assessed to him under this Part of this Act in respect of income derived in the transitional income year, if—

Where a transitional taxpayer who was resident in New Zealand at the date of his death has died (whether before or after the passing of this Act) —

his executor or administrator shall be entitled to a remission of the ordinary income tax assessed under this Part of this Act in respect of the income derived or deemed to have been derived in the transitional income year, whether by the deceased taxpayer in his lifetime or by his executor or administrator after his death:

Provided that this subsection shall not apply so as to authorise any remission of income tax in respect of income derived by the executor or administrator unless the executor or administrator has furnished a return of income in accordance with section seventy-four of this Act.

Where an agent is assessable and liable for ordinary income tax under this Part of this Act, and his principal is entitled under this section to a remission of that income tax or any part thereof, the agent shall likewise be entitled to a remission of that tax or, as the case may be, that part thereof.

If any question is raised as to whether any taxpayer is entitled under this section to a remission of the whole or any part of any ordinary income tax assessed to him under this Part of this Act, it shall be determined by the Commissioner.

No transitional taxpayer who is assessed with ordinary income tax under this Part of this Act shall be entitled to any remission of that tax or any part thereof, except as provided in this section or in section two hundred and twenty-six of the principal Act.

Where, in respect of a taxpayer who is entitled under section sixty-five of this Act to a remission of income tax assessed to him under this Part of this Act, the Commissioner is of the opinion that the taxable income or the non-assessable income of the taxpayer for the transitional income year is greater than the amount of the taxable income or, as the case may be, the non-assessable income that might be expected normally to be derived by the taxpayer in that income year, the Commissioner shall determine that amount, and thereupon—

Without in any way limiting the generality of the powers or any discretion of the Commissioner, it is hereby declared that the Commissioner, in determining whether or not the taxable income or the non-assessable income of any taxpayer for the transitional income year is greater than the amount of the taxable income or, as the case may be, the non-assessable income that might be expected normally to be derived by the taxpayer in that income year, may take into consideration all or any of the following matters:

Where the Commissioner is not satisfied that the amount of income returned by any taxpayer as having been derived by the taxpayer in the transitional income year from any source is the amount of the income that might be expected normally to be derived by the taxpayer in that income year from that source, having regard to the circumstances affecting that income year or to the trend indicated in the returns of income furnished by the taxpayer for any year, or for any other reason, the Commissioner may in his discretion defer any final determination until the amount or nature of the income derived by the taxpayer in the next income year or, if the Commissioner considers it necessary or desirable, in the next two income years, is known, and the Commissioner may have regard to that income in making the determination.

Any transitional taxpayer affected by a determination made by the Commissioner under section sixty-five or section sixty-six of this Act may object to that determination by delivering or posting to the Commissioner a written notice of objection stating shortly the grounds of the objection, within one month after the date on which notice of the determination is given to him by or on behalf of the Commissioner.

No notice of objection given after the time prescribed by subsection one of this section shall be of any force or effect unless the Commissioner in his discretion accepts the objection and gives notice to the objector accordingly.

The Commissioner shall consider all such objections and may alter any determination objected to; but, if an objection is not allowed by the Commissioner, the objector may, within one month after the date on which notice of the disallowance is given to him by or on behalf of the Commissioner, by notice in writing to the Commissioner require that the objection be heard and determined by the Transitional Income Tax Appeal Authority, and in that event the objection shall be heard and determined by the Appeal Authority.

For the purpose of hearing and determining any objection, the Appeal Authority shall have all the powers, duties, functions, and discretions of the Commissioner in making the determination.

For the purposes of this Part of this Act there is hereby established an appeal authority to be called the Transitional Income Tax Appeal Authority.

The Appeal Authority shall consist of three members to be appointed by the Governor-General on the recommendation of the Minister of Finance and to hold office during the pleasure of the Governor-General, of whom—

If any member of the Appeal Authority dies or resigns or is removed from office the vacancy so created shall be filled in the manner in which the appointment to the vacant office was originally made.

Without limiting the general power to make regulations conferred by section two hundred and forty-three of the principal Act, it is hereby declared that regulations may be made under that section for all or any of the following purposes:

The hearing of an objection under this Part of this Act shall not be open to the public.

On the hearing and determination of any objection under this Part of this Act the burden of proof shall be on the objector, and the Appeal Authority may receive such evidence as it thinks fit, whether receivable in a Court of law or not.

On the determination of any objection under this Part of this Act the Appeal Authority may either confirm or cancel or amend the determination objected to, and that determination shall be altered by the Commissioner, if necessary, so as to conform to the decision of the Appeal Authority.

The decision of the Appeal Authority on any objection shall be final and conclusive.

The decision of the Appeal Authority on any objection under this Part of this Act shall relate exclusively to the question or matter that is referred to the Appeal Authority, and shall not affect the right of the Commissioner to assess any other income of the objector that is derived in any year other than the transitional income year, or to amend the assessment of the income of the taxpayer for the transitional income year in any manner rendered necessary by the assessment of that other income.

The obligation to pay and the right to receive and recover any tax shall not be suspended by any objection under this Part of this Act; but if the objector succeeds the amount (if any) of the tax received by the Commissioner in excess of the amount that, according to the decision on the objection, was properly payable shall forthwith be refunded to the objector by the Commissioner.

Where any transitional taxpayer to whom subsection two of this section does not apply has died during the transitional income year (whether before or after the passing of this Act), the first return of the income derived by the executor or administrator of the taxpayer after the death of the taxpayer shall be for the period between the date of the taxpayer’s death and the end of the transitional income year, and the executor or administrator shall furnish a return of income accordingly.

Where any transitional taxpayer is authorised under section eight of the principal Act to furnish an annual return of income for an accounting year the income derived in which is deemed to have been derived in the transitional income year, and the taxpayer has died during that accounting year (whether before or after the passing of this Act), the first return of the income derived by the executor or administrator of the taxpayer after the death of the taxpayer shall be for the period between the date of the taxpayer’s death and the end of that accounting year, and the executor or administrator shall furnish a return of income accordingly.

Where a transitional taxpayer has carried on a farming business in the transitional income year and in the preceding year, and, during the transitional income year (whether before or after the passing of this Act), the taxpayer has—

the amount of the excess shall in each case (notwithstanding section one hundred and three of the principal Act and whether or not the taxpayer has made an application under that section to the Commissioner) be deemed to be assessable income derived by the taxpayer and to have been derived as to one-fourth thereof in the transitional income year, and as to the remaining three-fourths thereof in such of the three income years immediately preceding the transitional income year as are years in which the taxpayer has carried on the farming business and, if more than one, as to an equal part of that three-fourths in each of those years:

Provided that the amount of the excess to be taken into account under this subsection shall not in any case be greater than the amount by which the income derived by the taxpayer from the farming business in the transitional income year exceeds the average annual income derived by the taxpayer from the farming business in such of the three income years immediately preceding the transitional income year as are years in which the taxpayer has carried on the farming business.

The foregoing provisions of this section shall, as far as they are applicable and with the necessary modifications, apply in any case where the transaction or matter is in respect of a share or interest in any livestock.

Notwithstanding anything to the contrary in section twenty-four of the principal Act, the Commissioner may for the purpose of giving effect to this section amend any assessment or assessments of the taxpayer at any time.

Notwithstanding the provisions of section forty-seven of this Act, any provisional taxpayer who is required to pay instalments of provisional tax on the seventh day of June, the seventh day of November, and the seventh day of February in the income year commencing on the first day of April, nineteen hundred and fifty-eight, may, instead of paying the amounts of those instalments as prescribed by that section, elect to pay instalments of the following amounts:

The principal Act is hereby amended by repealing section seven, and substituting the following section:

The principal Act is hereby amended by repealing section fourteen, and substituting the following section:

The principal Act is hereby amended by inserting, after section seventy-six, the following section:

The principal Act is hereby amended by inserting, before section eighty (after the heading “Special Exemptions”), the following section:

Section eighty of the principal Act is hereby amended as follows:

The principal Act is hereby amended by inserting, after section eighty-three, the following section:

The principal Act is hereby amended by inserting, after section eighty-five and before the heading “Exempt Income”, the following section:

The principal Act is hereby amended by inserting, after section eighty-six, the following section:

The principal Act is hereby amended by inserting, after section one hundred and forty-two, the following section:

The principal Act is hereby amended by inserting, after section one hundred and fifty-nine, the following section:

Section eighty of the principal Act is hereby amended by inserting, after the words “public authority”, the words “or a Maori authority”.

Section one hundred and four of the principal Act is hereby amended as follows:

Section two hundred and twenty-nine of the principal Act is hereby amended by omitting the words “fines under this Act shall be recoverable”, and substituting the words “proceedings for offences against this Act shall be taken”.

The principal Act is hereby amended as follows: